Money is often discussed in terms of numbers and calculations. Many believe that simply saving a specific amount each month guarantees financial success. However, managing money isn't just about numbers—it's also about emotions, habits, and thoughts. This is where financial therapy comes into play, helping individuals understand their relationship with money.

What Is Financial Therapy & How Can It Help You?

Financial therapy is an emerging field that helps individuals navigate their emotions and behaviors related to money. It differs from investment management or financial advising.

"Financial therapists don't just focus on budgeting or saving. They help people understand their emotions and behaviors around money," explains Lindsay Bryan-Podvin, a financial therapist. "They assist individuals in identifying what's holding them back from making smart financial decisions."

Similar to traditional therapy, financial therapy specifically addresses money-related challenges. It examines how finances impact various aspects of life, including relationships and stress. Many financial therapists have additional expertise in working with families, couples, or individuals with past trauma.

Why Financial Therapy Matters: Key Advantages for Your Well-Being

There are many reasons someone might seek financial therapy:

  • Some people overanalyze investments, waiting for the "perfect" moment and never taking action.
  • Others focus too much on making money and forget to enjoy life.
  • Many couples avoid discussing finances to prevent arguments.
  • Some individuals view money negatively and avoid managing their finances.

Financial therapy helps people overcome these barriers, allowing them to make better financial decisions. Many clients report feeling more confident about money after working with a financial therapist. They also learn how their personal experiences impact financial choices and how investment management can help them grow their wealth wisely.

Tips for Choosing the Best Financial Therapist for Your Needs

Unlike traditional therapists, financial therapists do not have a single, standardized licensing system. In the U.S., there is no official board regulating financial therapy, but you can check a therapist's background and certifications.

The Financial Therapy Association offers the Certified Financial Therapist-I (CFT-I) credential, held by experts like Lindsay Bryan-Podvin and Derek Hagen. Other organizations, such as the Center for Financial Social Work and the Financial Psychology Institute, also provide certifications.

When choosing a financial therapist, consider the following:

  • If you need mental health support, look for a financial therapist who is also a licensed counselor.
  • If you need investment management advice, find someone with financial planning experience.
  • Check their certifications and professional background.
  • Consult with at least three financial therapists to find one you feel comfortable with.

Many financial therapists offer a free initial consultation, allowing you to determine if they're a good fit for your needs.

Understanding the Cost of Financial Therapy

The cost of financial therapy ranges between $100 to $200 per session, depending on the therapist and individual needs. Some health insurance plans may cover part of the expense.

How Financial Therapy and Investment Management Work Together

While both play crucial roles in financial well-being, they serve different purposes.

  • If you need help choosing a retirement plan, a specialist in investment management is the right choice.
  • If money causes you stress, anxiety, or confusion, a financial therapist may be more beneficial.

Final Thoughts

Many people set financial goals at the beginning of the year—saving more, improving credit, or investing. However, achieving financial success requires more than setting goals; it demands changing past financial habits.

  • Financial therapy helps individuals understand the emotional and psychological barriers preventing them from reaching their financial goals.
  • Investment management focuses on growing wealth through strategic planning and investments.

Both can be valuable in achieving financial success. If you want to build a healthier relationship with money, reduce stress, and make smarter financial decisions, financial therapy might be the next step for you.